don't forget to check records show. have a great night and we will see you tomorrow. ♪ lou: evening, everybody. thank you for being with us. wall street picking of the month of august in record fashion after a series of upbeat economic reports revealed a strengthening job market and positive news in the auto industry and the entire manufacturing sector. that dogs out its industrial average surging toward 16,000 while sitting is 209th record close of the year. the dow up nearly 130 points. the dow jones industrials now more than 2,500 points. a 21% gain year today. the s&p tonight set a new record high. brought our markets 24th record close of the year. the s&p up 21 points on the day

to finish above 1700 for the first time in history. it is now up nearly 20 percent year-to-date. the records did not stop there. the russell 2008 its 47 record high of the year. the small-cap index up nearly 25% so far this year. the nasdaq up nearly 50 points in a 52-week high. the wilshire 5,000 measuring the day's paper gains of $2,705,000,000,000 on the year. good news on main street as well as wall street. the number of americans applying for unemployment topped 326,000 last week. that is the lowest level in nearly six years. manufacturing growth accelerated in july as well new orders surging in the auto industry continuing its strong comeback. sales posting the best july performance since 2006. chrysler, ford, gm of reporting

double-digit gains. the economy, markets and ignoring the theater of the absurd today at our nation's capital. the markets and the economy improved, the obama white house struggles to maintain order domestically and, yes, even abroad. russia today allowed america's most wanted man, and as a liquor edwards snowden to leave the moscow airport after granting him a one-year temporary asylum. the move that embarrassing blow to the obama administration was as -- which has charged him with espionage. today's signal that it could hurt relations with moscow. >> we are extremely disappointed that the russian government would take this step despite our very clear and lawful requests in public and private to have mr. snowden expelled to the united states to face the charges against him. this move by the russian government undermines the longstanding record of law

enforcement cooperation. lou: the white house says it is now evaluating whether to proceed with a planned summit in moscow scheduled for next month. on capitol hill silence from those who have called snowdon a hero. there was strong bipartisan combination. here is senator chuck schumer. >> russia has stabbed us in the back, and each day that snowden is allowed to roam free is another twist of the nice. lou: wow. well, senator john mccain called it a slap in the face of all americans. president obama meeting with lawmakers on both sides of the aisle to talk about the surveillance programs run by the national security agency among those present that chairman ann ranking members of both the house incident intelligence committees. critics to say that the nsa has exceeded its authority under the foreign intelligence surveillance act. all on capitol hill, acting internal revenue service

director daniel were folks will -- grow by the house ways and means committee. the central focus of the hearing on his agency's implementation of obamacare enforcement as well as the ongoing congressional investigation of the irs targeting of conservative nonprofit -- nonprofit groups. fox news chief congressional correspondent with our report. >> acting commissioner was asked in the house ways and means committee hearing why irs employees want to be exempt from obamacare when it will play a key role with it. >> why are your employees trying to exempt themselves from the very law your test to enforce? >> seconds before myself. i prefer to stay with the current policy that i am pleased with rather than go through a change if i don't need to. >> this as newly revealed e-mails suggests the irs may haae shared confidential tax information with the federal election commission, a violation of law. the committee is demanding answers with the subcommittee chairman writing, the american

public is entitled to know whether the irs is an appropriately sharing their confidential tax impression with other agencies. today he tangled with texas republican kevin brady. >> he was assuring us that the irs, despite the significant abuse of power, already investigating, the irs has never shared private taxpayer information with other federal agencies. i am looking at an e-mail from 2008 where loess lerner did exactlyythat. >> i never assured that there are not incidences that occurred. we share information roughly with 300 different federal and state agencies as a matter of routine business. we have procedures and safeguards in place. >> lawmakers say in the process of investigating the ira starting of conservative groups that discovered e-mail between los lerner and the federal elections commission. the irs official now on paid

administrative leave who came to capitol hill and led the fifth after defending her actions telling the house oversight committee she had done nothing wrong. ways and means has released copies of six exchanges showing the name several times and her interactions with an sec attorney in the enforcement division. >> the irs has said all along that it never should disinformation with other agencies. we now have e-mails that show that it is. >> if these exchanges, questions asked about whether conservative groups, american future fund american issues project had received exempt status. from the e-mails that we have seen now, it proves is clear that political appointees used both the irs and the federal elections committee. a conservative organization who just wants to be involved in a democratic process. >> now ways and means is asking for all irs sec e-mail exchanges from 2008 to 2012. as the investigation continues,

president obama has nominated a permanent irs commissioner. white house officials say a former freddie mac board chairman has the experience to restore public confidence in the irs and suggest that we should not read too much into the timing of what was a bumpy day here on capitol hill. lou: thank you very much. for more on obamacare, the asylum granted by russia and the seemingly endless string of white house scandals i am joined by senator john bourassa, republican policy committee chairman, member of the senate foreign collected by foreign relations committee and several others. >> thank you for having me. lou: let's start with obamacare. this is starting to feel like the train went that the speaker called it. what is going on here? we are talking 60 days from implementation of exchanges. this is starting to look like an impossibility as well as a train

wreck. >> well, it is continuing to unravel. more and more people think that the health care law will be bad for them. actually, by three to one over people who think it will be good for them in terms of their cost and quality of care. remember, what people were looking for from the beginning was access to care and affordable care. they're getting neither. we saw that with the irs agent who said, i like what i have. the president promised that to people all around the country, and people are now seeing of the cannot necessarily keep what they have if they like it. we have unions coming out against the health care law including the one that represents these irs agents who are the enforcers of the health care law. democrats jumping ship in terms of the employer mandate as well as the individual mandate. and those pass the house of representatives. lou: the employer mandate, the individual mandate to be tested yet. at this paw we are talking about spending a lot.

i mean, as you point out, the national treasury employees union that represents the irs and 16,000 agents that are supposed to be hired to enforce a obamacare -- i love that expression. enforce health care. this is really quite something. and the administration, does it have options here that it can exercise to buy itself time to recast this entire mess? >> that gets into the issue of what the administration was doing and whether it is legal or not. i would not think that the president has the legal authority to just delay a partt3 of the law, being the employer mandate. in the same time same the individual mandate everyone has to buy government approved insurance by the first of the year, he wants to leave that part in place. so we know that the law is not just unpopular but it is also an hour and fair to how it treats

american citizens. but this law is bad for people's paychecks, jobs, as well as health care. lou: and we are all feeling the effects of the tax increases that have accompanied the onset of obamacare. let's turn to one other development that has to be at least in the short term even more embarrassing to the president. today russia granting edward snowdon one years asylum in the white house coming out with a piffle that you hear from j. hardly a robust, vigorous response to what was a slap in president obama's face. >> you are absolutely right. the white house was disappointed. that is what your third grade teacher used to say to you. they are not mad, disappointed. the president's recent with russia has failed. the leader of russia does not

fear the united states for this president. there are things that we ought to do as we say we will not go to the summit. we will not have the 1-on-1 meeting that the president was supposed haven't said petersburg at the end of the summer. take a new look at the whole strategic arms reduction activity that the president has committed to. i think it was a mistake. i voted against that, but we ought to beef up our missile defense to our allies in europe. lou: we should remind the audience as well that the president has basically proffered a reduction of one-third of nuclear weapons. it is sort of a sign of good faith to enter into a negotiation. remarkable initiative, perhaps the most remarkaale -- the most remarkable ever taken by president and arms reduction. >> she did that when he went to berlin. you wanted to pretend he was john kennedy. and i believe that the russians at this point have no fear of

the united states commoner respect for this president. it is because of the president's policies and the way that he has behaved as president of the united states. lou: us turn to the scandals that the president and his folks are aggressively trying to pin a label phony on the scandals that now, which they now find themselves embroiled. >> i believe the presidency standing with the american people because they know the scandals are not funny when they talk to what has happened with benghazi and the irs. people have been anxious about dealings with the irs. now there is icy, wrong angry, and wyoming but the irs. the way it targets a speeific political groups, the way it

wastes taxpayer money. we saw that with these different conferences that they have had, these terrible videos that have come out, all with taxpayer money. the irs is spending money with no respect for the taxpayers. now you see the irs lobbying congress. the union has told irs agents' lobby congress are you don't have to live under the obama health care law which is the law of the you're being paid to enforce. lou: as we watch all this unfolds, it is stunning, really, that there is so little effort on the part of the traditional watchdogs. the fourth the state, liberal, national media. there ii no accountability. is there likely to be any beyond the ballot box beginning next year? >> i expected more especially with the day that the optics of the way that the white house and the justice burton has gone after reporters. the associated press online subpoenaing a mouse going into

the private dealings of the reporters. not the level that you or i expect. >> we thank you for being with us. afford to talking with you again soon. >> a key for having me. lou: much more on the obama white house scandals and the countdown to obamacare, talking with congresswoman dianne black next right here. stay with us. president obama declared the sequester budget cuts to be devastating. fox news carl cameron says the record straight next. the door the boys used double miles from their capital oneenture card to fly home for the bigamily reunion. you must be garth's father? hello. mother. mother! traveli is sy with thventure card because you can fly any airline anytime. wo words. double miles!

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♪ lou: on wall street, stocks

soaring to record levels on upbeat economic news. all ten s&p sectors moving higher. gold dropping a dollar $0.80 to $1,311 per ounce. crude oil up nearly 3% just below 100 per barrel. the bond market soaring. and a federal jury today finding former goldman trader the breeze toward a high level for fraud for his role in the failed more is deal that cost investors a billion dollars. he faces potential fines of possible -- potential fines and a possible ban from the industry. the fight over the federal budget set to heat up over the august reset. the so-called sequester cuts are a big point of contention, of course. the house speaker today suggested a short-term continuing resolution thattwould give both sides time to work rationally on an agreement. the president that congress will have -- are you ready for this -- all nine days to reach a deal

when they return from summer vacation. the obama administration warned of impending disaster from the first equestered deal. that has not been the case. fox news chief political correspondent carl cameron will look at the reality. >> president obama and his party have learned repeated -- warned repeatedly of dire consequences from the automatic federal spending cuts known as the sequestered. >> across the country these cuts will force federal prosecutors to close cases and potentially let criminals go. >> border patrol agents will see their hours reduced. fbi agents will be furloughed. >> but when air traffic controllers face furloughs congress and the president quickly let the faa find savings in other ways and ended the furloughs. other agencies follow suit. customs and border protection did belt-tightening. tsa use a hiring freeze to

recuse overtime. the department of education, agriculture, justice, irs, u.s. park police and many others canceled or scale back furloughs' dramatically. the washington post back shed -- fact checker gave harry reid for pinocchio's for falsely claiming the cuts would cost jobs. estimatts suggest it would be one sixth of that. the president got for pinocchio's for his false claim that there would be an immediate pay cat which was never contemplated. there has been bipartisan concern and it comes to the defense department the to much cutting will weaken national security. a former gop u.s. senator insisted he was not crying wolf with his complaint that that's a bad consequences. >> ending army combat training center rotations for brigades not deployed to afghanistan. and imposing furloughs for 650,000 dod civilians. >> instead of the threatens 22 days of unpaid leave, furlough days are being slashed to as few as six. this year's automatic cuts total

$85 billion nationwide with next year more than 100 billion in so-called sequester cuts scheduled. government agencies are able to reduce most by eliminating waste and doing housecleaning, but many adjustments are only one time shot. next year's bigger cuts will almost certainly require even bigger readjustments. lou: thank you. carl cameron. the senate today confirming cement the power to be the next u.s. ambassador to the united nations. the vote, a comfortable margin 87-10 despite concerns about the controversial past comments about the united states. well, if you thought eliot spitzer, anthony wiennr, and mayor bob feller could not get any more despicable think again. running for new york city comptroller was asked three times a day whether he is once again engaged in an extramarital affair. here is what the once hooker happy loved of had to say.

i am so tired of the personal attacks, and annwered all those questions. they're rather superior former love of. perhaps current former love of. anthony wiener making the new york mayoral race even more of a circus if you can imagine. the cereals sector winning the endorsement of a well-known new yorker. he rose to fame with his campaigg tagline, the rent is to get my. and an attorney representing san diego's mayor says that the city should paid and defend bob fuller against sexual-harassment allegations because the mayor never received state requires sexual-harassment training. what is the mayor to do. up next the president's friends on capitol hill throwing him an early birthday party in the "chalk talk." we will show you tonight why he

might not be in the mood to celebrate. we're coming right back. ♪ i'm only in my 60's... i've got a nice long life ahead. big plans. so when found out medica doesn't pay all my medical expenses, i got a medicare pplement insurance pn. [ male announcer ] if you're eligible for medicare, you may know it only covers about 80% of your part b medical expenses. the rest is up to you. call and find out about an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company.

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lou: we will show you

something to die that3 receives so little attention people not even aware of the expense of what we will discuss tonight. the president turns 52 on sunday we want to wish him happy birthday and with the early celebration the house democrats giving him a birthday cake during a visit to capitol hill yesterday. dark chocolate, only the best for the commander in chief. but on his birthday the president has not had a lot to celebrate. his clear politics job approval upside-down. 45 percent approve compared at 49 percent that disapproved. the average approval for obamacare 40% approval with

51 percent who oppose it outright. not as were the president wanted to be two months before the implementation of the exchange's. and obamacare is called to be a trade wracked by most republicans and some democrats. but the president meets with the regrets this week to rally them to assure them he will campaign hard for them in the midterm election but a new study shows he may not be high in demand as he thought. according to the university of virginia, the democrats and the this president has lost 55 seats in the house since the bombing took office. and they lost four seats in the senate during that time. democrats have lost nine governorships since 2009 and

607 state legislative jobs. just think what a lousy record this president has with elections in you probably have not heard the mainstream liberal media of the catalog of what has transpired with the state and federal level. but the headlight here is very simple that will have democrats extraordinarily disturbed for next year. a devastating record likely to get worse next year. chris dyer wall points out going back to 1865 over 150 years only one second term president has actually not

lost a single n/a in the election. bill clinton 1998 those are impressive numbers from the democratic party but in eight days he and his family can relax on their vacation at martha's vineyard and if this president needs a rest with the agency director of his of his administration does not want any part oo obamacare. we are coming right back. 60 days and tell obamacare 80 is not what -- willing to change the health care plan over today's confrontation on capitol hill.

lou: a nationwide stomach bug is worsening with the albright officials and i would have reported the total number of cases at 400 in 16 states. 400 cases and where we bring you this information? at least 22 of those have been hospitalized and state health officials have linked the eldest to prepackaged salads. the cdc says it is too early to tell the source even though the fort monday's the first cases were reported in june. this is creating frustration for the health agency's and others with the federal government with the cdc in all of those in closed doors and have them promising more transparency but that is

what we have to this point, 400 cases a and it is spreading. turning to the acting irs commissioner to today admitted he was not change his current welfare plan to obamacare my next guest says we are of the 60 days away from implementation at the time the administration says it is not ready about what is surely a trade representative. we now have from the house ways and means committee and also a member of the budget committee and a registered nurse for more than 40 years. great to have you with us civic figure for having me on. >> you heard them say that's is just for all of us peasants. >> this is a trade iraq with

the acting commissioner to say at what anything to do with it. lou: 16,000 of the agents are supports -- suppose to we forcing obamacare. when will it dawn on everyone this is a mess and it's something better be done desperately? >> we had the hearing today to shed light on a we have been looking after several months looking at the issue of verification. and secretary sebelius came before our committee 15 times we are ready to go with no delay. so while we were celebrating the birthday of our country they can now with two provisions to say that we will delay and the other is the verification of income

for subsidies. lou: data like the honor system when they come to give away government monday? >> right. i had a question today then we shouldn't have it required any longer on the tax returns? we know that this is a train wreck and it is costing the hard working taxpayers if we don't verify their income. lou: it is absurd because we know for example, at this point medicare is estimated between $10,200,000,000,000 per year just with fraud alone.

>> and those that are different we can look at the inspector general's report looking at $11 billion per year for just that program and another billions for tax credits but this is estimated $25 billion of taxpayer credits but what if there is not a verification system? these are not provisions coming from the republicans they have been put in their with the employer verification somebody has access and they're also looking to get those tax credits it is a recipe for huge amounts of fraud.

lou: you will vote again to roll back the affordable care act? >> we continue to do everything we can to stop this trade wreck from occurring i believe the more we can do but what is patient centered in market-based it is the way it should be done but the fact we cannot we have to do everything that we can to delay this tradd rex reed of have this huge amount to fund something that will not work at the end of the day. lou: thank you for being with us. up next to another record day on wall street to talk with the chief economist at ubs. stay with us.

lou: this market has a record number of millennial still living with their parents despite all the good things happening and a new research poll shows 36 percent of those 18 through 31 years of age now live with their parents up 32% from back in 2007 and the marriage rates among the belittles -- millennial have plummeted just did represent our very compared to 30% in 2007 with new numbers ahead of the jobs report we have the chief u.s. economist from ubs investment research, a great to have

you with us. is this accurate? >> this is good news people have delayed with a normally do with the mom-and-pop and have babies after they get married. >> that is the positive way and it is a great point paul socinus some serious scarring. >> we we are not out of yet but we will get out of that. and respecting will go down.

lou: what type of numbers you expecting tomorrow and the remainder of the year? >> i think tomorrow we will be at 7.6 or 7.five but i think we can do seven% at the end of the year and then began a six-point to 5%. lou: and how many jobs? >> around 200,000. lou: that is a solid number. and as we watch this ocher when delicate these averages to see where we were seven months ago this is great stuff and does it continue? >> i think that it does ince still having doubts with the recovery they start to bring

in better numbers from the gdp to help to goose the economy. >> we have seen some blips from the economy as a have a slight drop in construction spending. >> we have mixed news. the contracts for new homes were up and still at a pretty high level but it has fallen just a little bit but it used to be at the margin the rates that went up those that were middle income word disqualified they have been disqualified for a long time rates go up and prices go up

and they try to beat the rush. lou: that makes all the sense in the world of course, with this economy but the president yesterday with larry summers and his record said he was attacked too much as a possible replacement for ben bernanke. to think that somebody needs a replacement and what does that mean? >> but this is serious business at don't recall having a selection of the federal share will have a public discussion but i happen to think mr. severs is qualified does so art others.

also dodd:is qualified to do the job. not just those that are confident of the president. and now with the discussion with the vice chair principal economist highly regarded he is considered a dark horse at this point except foo summers why was even introduced? >> professor summers has been a close confidante to obama it has a tremendous amount of confidence. but the head of the fed does not necessarily have to be

the president's powell and in fact, i prefer to see someone who is independent of the white house. lou: words of wisdom. thank you. up next a summer of big budget flops for hollywood. and what we can expect if we're going to stay in business. we will be right back. >> the jobs number it comes out friday morning. matter what the number cover the administration and the3 media willis did it positive. we will not. party in a company. 9:20 a.m. eastern.

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lou: plot -- budget blockbusters bombing it is the best ever for movie studios of record now to join as with that paradox is the chairman of mandalay entertainment, peter good to have you with us. i don't know if there has been so much banks to buy yet we learn despite the big block buster flops you are making a heck of a lot of money. >> these have to make the bid for dome's they have to focus on the franchise than there will be blood. certainly lone ranger if they don't live up to expectations they are

written down immediately you have to expect that but they have no choice if they want to fund those big studios the have to make the big pictures. >> that does not disqualify anyone certainly aidman it tramples the competition so take a look of five films all under par iron man iii, and then of steel, munster's university university, a despicable become a "fast & furious", all of those are not a solid for original idea of flying gaff irritated and then i demand a sequel. [laughter] let what producer in his

right mind is think r.i.p.d. would work? and johnny depp for crying out loud playing tonto. you have great talent but upside down ideas. what is going on. >> if your a studio and the producer and director that brought all of them they will make another sequel next year comes in with the picture with johnny depp with that costume maybe it is irresistible you have to be the village idiot to say no. so the studios are forced to look for some certainty like proven, books sequels into a drive that certainty is inevitable and what that means when you get the

franchise you make them like flak jacket -- gottschalks every two years next year they'll say we will turn it down. no. there is another private already dancing and other fast and furious and more avengers and more and more of the same the studios have to go bag. >> the tie gate -- china movie group with the production in the financing of the movies is what appears to be a change in the product for the international audience. >> look at it this way that is that what they called it a very small piece of the pie but today international is 2.3 times the domestic box office. 700 million?

300 million. >> that is what they're doing. >> and how big of a play is set for the chinese market? where are they in 10 or 20 years? >> i intend screens per day they're very active and they want to use capital for china there is some influence with the market that is the merging and russia is emerging also in the and it is a huge market the production is enormous with a lot of capital. they try to make some of the elements to make it better. >> not a bad time to be a movie star despite what we

have seen it is always great and instructive to talk with you. tomorrow thh senator from mississippi joins us. we will see you tomorrow night. night. good night from new york. ♪ ...and ev stop itself if it has to. the technology may be hard to imagine... but why you wod want it isot. ♪ the 2014 e-clas it doesn't just see the fure, it is the future.

neil: and here you were worried about them collecting your phone records. tens of the nsa has been collecting more than that. forget about every color we make. try every e-mail we right, every chat room in which we have a chance. what we type, where we browsed, how long we have been browsing, everything we point and click catalog to by an agency his abuses are pathetic and sick. here is what is even more alarming. they're still doing it. they are doing more of it. slocum, everybody. i'm neil cavuto, and it is enough to make even james bond blush.